Monzo is reportedly in talks over a merger with Danish peer Lunar Bank.

People familiar with the matter told Bloomberg that the British FinTech is exploring the potential for some form of “combination” with Lunar as it looks to further expand and develop its presence within Europe.

Sources also said that Monzo has also been exploring other potential targets that would help it expand in Europe but noted that deliberations are ongoing and there’s no certainty Monzo will proceed in deals or pairings of any kind.

In 2022, Lunar's net interest and fee income grew by 360 per cent to around DKK 233 million from around DKK 51 million in the previous year, with data provider Pitchbook valuing the company at around $2.2 billion.

Although Monzo recently reached profitability, it also recorded £100 million in losses.

The British FinTech’s financials showed an 88 per cent rise in profits to around £214 million from £114 million in the previous year.

“While we grew by an average of 133,000 new customers each month, engagement with our products and features also increased – with deposits up 34 per cent to £6 billion and card spend increasing by 38 per cent to £33.6 billion,” chief executive TS Anil said at the time.

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